Kansas bankers are questioning hefty bonuses paid to executives at Kansas Venture Capital Inc., a high-risk investment firm that once defined the state’s economic development efforts.

“I think it’s safe to say there’s an interest in finding out what transpired,” said Jim Maag, executive director at the Kansas Bankers Assn.

The state’s bankers raised $4.3 million for Kansas Venture Capital in 1988 in hopes of creating much-needed jobs. Taxpayers added $5 million to the fund. Many banks still own stock in the firm.

Earlier this month, two former employees filed a lawsuit in Johnson County District Court accusing the firm’s managing partners John Dalton, Thomas Blackburn and Marshall Parker of using the profits from the sale of a Wichita company to give themselves each annual bonuses of more than $200,000 for three years.

According to the lawsuit, the partners also raised their $110,000-a-year salaries to $125,000, spent more than $93,000 remodeling their offices, and used the firm’s money to buy a pair of $40,000 sport utility vehicles.

The employees Ellyn Tyrell and Carole Ladish filed the wrongful dismissal lawsuit after being told to either accept part-time positions or resign so the company could afford to hire a financial analyst. They’re seeking more than $75,000 in damages.

In the lawsuit, Tyrell and Ladish claim Kansas Venture Capital structured the sale of Tru-Circle Corp. in a way that shortchanged both the state and the stockholders.

Gov. Bill Graves has ordered an investigation of the circumstances surrounding the sale.

Kansas Venture Capital officials have denied any wrongdoing.

“These are two disgruntled employees. All of the allegations are false and without legal basis. We are deeply troubled by this lawsuit,” KVCI president Dalton said in an earlier interview.

Efforts to reach the firm for comment Thursday were unsuccessful.

“I think a lot of Kansas bankers want to take a look at this,” said Carl Butell, president at Baldwin State Bank.

“Unfortunately, in the past a lot of us haven’t paid much attention to this because our stakes, individually, aren’t that high,” he said. “But these allegations should attract attention.”

Kansas Venture Capital’s annual stockholders’ meeting is today in Kansas City, Mo.